Income tax calculation - India

[Former Member]

Hi

While testing for income tax calculations, I hired an employee during April -13 and another in Oct-13.

On executing payroll, system shows in wagetype /416 Gross salary amount equivalent to 11 months Gross for employee joined in April and for 5 months for October joined employee.

Normally system will take 12 months and 6 months to store the value in /416.

In which table/ Rule I should make the corrections. Pl. reply

Thanks

Raghu

[sikindar_a]

what is the value in /401 ?

[Former Member]

/401 is having 10.00

[sikindar_a]

have u checkd the table T54C0

[Former Member]

Ctry grouping 40  Day start of fis year 1  Mth start of tax year 3

[Former Member]

Hi Raghu,

As Sikinar said in table T54C0 change Mth start of tax year to 4. So that when u run payroll for April hired employee /401=11 instead of 10 and your /416 will be for 12 months. Same will happen for October hired employee

Hope this will help you.

regards

Sankarappa